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This interview is a small excerpt from a comprehensive interview published in The Wall Street Transcript as part of the Technology Sector, available at (001-212-952-7433) or http://www.twst.com/sectors/techno.html

TWST: Could you bring us up to date on Internet Business Group since we last spoke with you and give us a brief background for those not familiar with you?

Mr. Darvish: Internet Business Group (IBG) is a company listed on the AIM Market of the London Stock Exchange. We floated about two and a half years ago and at that time our business was predominantly web development, design and software engineering. As there has been a downturn in the core internet professional services market, we’ve evolved a business over the last two or so years to be a lot more orientated towards e-commerce. Now, we own and operate a number of different e-commerce operations in the UK market and are very much focused on this.

TWST: What challenges have you faced in year 2002?

Mr. Darvish: The challenge we faced in the year 2002 was making sure we were one of the survivors. Previously, there had been a lot of excitement in the market. There were a lot of companies with great ambitions that started to fail in 2002. Our primary challenge was to scale down our professional services business whilst simultaneously growing our e-commerce activities. This has ensured that we have survived the downturn and have businesses operating in growth markets.

TWST: Who are your competitors in this space and with all the shaking out have some left the e-commerce arena?

Mr. Darvish: Well, a lot of the shakeout in the e-commerce space has been driven by companies that had flawed business plans. Typically they operated a business model whereby they would spend more money on customer acquisition than the amount of margin they were making out of that customer. This has resulted a few high profile failures, such as Boo.com, as well a significant volume of smaller companies closing. That’s cleaned up the marketplace a bit and, if anything, the effect of the investment downturn has been very positive for the e-commerce market. It has created a level playing field whereby everyone has t make money out of each and every customer that they sell to and companies are no longer able to gain a competitive advantage through having raised more funds than the people they are competing with.

TWST: What do you think your competitive advantages are?

Mr. Darvish: Our competitive advantages come from the unique mix of the businesses that we have. We still operate a scaled down internet professional services business where we carry out design and development work for companies like Singapore Airlines & Reebok Fitness in the UK. The implication of this is that we are able to carry out all web design and development for our e-commerce operations in-house. A lot of the costs that e-commerce companies normally incur are for software development, technology, architecture, design and spending money on marketing services. We have a core skill set of people whose costs are actually paid for by our fee-paying clients.